Ex-Southwest financial chief to lead ATA

ATA Holdings Inc. said its ATA Airlines operating subsidiary broadened the responsibilities of one-time Southwest Airlines executive John G. Denison, naming him to serve as the airline's chief executive.

Denison, 60, joined the Indianapolis airline holding company Jan. 20 as a co-chief restructuring officer. ATA said Denison will continue in that role.

In late October, under pressure from high fuel costs, relentless industry competition and expensive aircraft leases, ATA Holdings filed for Chapter 11 bankruptcy protection. Under Chapter 11, companies can continue to operate but are shielded from creditors while they seek to reorganize financially.

As 2004 drew to a close, much larger rival Southwest Airlines made the winning bid in a bankruptcy-court-administered auction of certain ATA assets.

The Dallas-based airline paid $40 million to acquire six of ATA's 14 gates at Chicago's Midway International Airport. Southwest also provided $47 million in badly needed loans and agreed to pay $30 million for a 27.5 percent stake in ATA when the Indianapolis company completes its reorganization and emerges from bankruptcy.

The deal helped keep ATA flying and established the two companies as code-share partners, expanding service options for consumers.

Denison had retired in 2001 from his job as chief financial officer of Southwest. But in the wake of Southwest's buy-in, ATA directors tapped him for the restructuring team.